Missouri voters are one step closer to deciding whether to eliminate the state’s individual income tax after a court rejected a legal challenge aimed at blocking the measure from the August ballot. 

The decision clears the way for Amendment 5, which would direct the Legislature to phase out the individual income tax based on state revenue growth if voters approve it. 

Circuit Judge Christopher Limbaugh issued a final judgment Monday, dismissing all four counts brought by a challenger who argued the proposal was deceptive and violated constitutional requirements. 

The lawsuit was filed by Jill Owens, a retired Kansas City educator who claimed lawmakers failed to fully explain the proposal to voters. Her attorney, Chuck Hatfield, argued the amendment would lead to a major expansion of sales taxes while ignoring existing taxpayer protections. 

“Amendment 5 is not only deceptive, it unconstitutionally covers too many subjects and should have no place on the ballot,” Hatfield said. 

Limbaugh, whose judicial district includes Jefferson City, found the ballot summary statement and fair ballot language to be sufficient, fair, true and impartial. He also rejected claims the measure unconstitutionally covers multiple subjects or amends multiple constitutional articles. 

State officials praised the court’s decision as a victory for the democratic process. 

“Today’s ruling was a win for Missouri voters,” Attorney General Catherine Hanaway said in a release. “Liberal activists brought this lawsuit to block Missourians from voting on whether to eliminate the state income tax. Judge Limbaugh rightly rejected that challenge. We are proud to continue fighting for the right of voters to decide the future of tax policy in our state. Missourians will have their say this August.” 

The amendment would not immediately alter tax rates. However, if approved, it would require the Legislature to enact future phaseouts as state revenues grow. It also would allow lawmakers to expand the sales and use tax base to offset potential revenue losses. 

The fair ballot language notes that any expansion of the sales tax base must be accompanied by a reduction in the income tax rate. 

Gov. Mike Kehoe previously signed proclamations placing the measure on the primary ballot rather than the November general election ballot. Kehoe said the decision gives the Legislature additional time to prepare for a potential transition. 

Owens immediately filed a notice of appeal Monday afternoon, seeking review by the Missouri Court of Appeals. 

Once the clock strikes midnight June 10, courts will no longer have the authority to alter, remove or add measures to the August ballot.